The Difference Between CTO (canceled to order) Stamps & Used Stamps

In general, stamps that have cancellations or postmarks, but still have their original gum on the back side, are canceled to order stamps - often referred to as CTO stamps. They are usually worth 10-30% of the value of the same stamp that has been postally used. They tend to have the cancellation in the corner (instead of in the center of the stamp) as several stamps are often cancelled at the same time, especially if they're in a block of 4 stamps. Every block of 4 would typically receive a cancel at the place in the center where the four stamps intersect. The cancellation thus falls evenly on all four stamps.

CTO stamps are sold by the postal administration of a country for much less than the face value of the stamp. Generally they are remainders or are stamps that are being replaced by newly issues. Since the post offices will not be able to use up all their supplies of these supplanted stamps, they are sold to stamp dealers at a low price to recoup at least some money. This gives the stamp dealers a very inexpensive source of stamps that they can sell to stamp collectors at reduced cost. Many times they are sold to new stamp collectors as an inexpensive way for them to get into the stamp collecting world.

Even though their value is somewhat less than used stamps, some collectors prefer the nice corner cancel that you usually get with CTO stamps. Other stamp collectors prefer stamps that have been postally used. It's an individual choice, dictated by your personal preference and the depth of your pocket.

One last comment on CTO stamps: many collectors do not like CTO stamps. Why? Almost all modern stamps, except the definitives and some special issues, are collected because of the pictures on them. So why do these stamp collectors prefer postally smudged copies and not the neat CTO? And as for the modern "killer" cancellations used by the United States and many other countries - they can completely obliterate the face of the stamp. Are they really better then CTO?

It all depends on what turns you on about the stamps that you collect.